IDBI-B11-BL-LU2-NI Act-Part 1

A Bill of Exchange is ................

• an unconditional order to pay

• a conditional order to pay

• a conditional promise to pay

Sec 4 of the NI Act 1881 refers to.............

• Bill of Exchange

• Cheque

• Promissory Note

A promissory Note has to be ...............

• verbal assurance

• in writing

• conditional

The party which is involved in a Bill of Exchange and to whom the order to pay is made is called...........

• drawee

• drawer

• payee

One of the following sections of NI Act 1881 deals with Cheque. Identify.

• Sec 5

• Sec 4

• Sec 6

One of the following is not considered as a Negotiable Instrument as per NI Act 1881.

• promissory note

• Currency Notes

• Bill of exchange

A customer is expected and bound to inform the .................... about the loss of a cheque.

• Drawee Bank

• Payee

• Collecting Bank

When a cheque is drawn on a bank, the bank is called the.........

• Payee

• Drawee

• Drawer

IDBI Bank allows one of its clients to withdraw against

     clearing of a cheque. The banker is called as:

• Holder in due course

• Holder for value

• Reimbursement banker    

When the endorser adds a direction to pay the amount specified in the instrument to a certain person, this endorsement is..........

• endorsement in full

• Endorsement in blank

• conditional endorsement